In a world where digital assets are quickly becoming a cornerstone of global finance, the United States finds itself at a crossroads. The Trump administration has repeatedly emphasized its commitment to making Americans more prosperous. From pledging to restore economic strength on the campaign trail to appointing forward-thinking advisors, the White House appears poised to usher in a new era of financial freedom. But if President Trump really wants to enhance wealth creation for average citizens and establish the United States as a world leader”The superpower of Bitcoin”—his administration must embrace a bold and transformative policy: eliminate capital gains taxes on Bitcoin.
The winds of change: lessons from abroad
The Czech Republic recently made headlines when its Parliament voted overwhelmingly to exempt capital gains from Bitcoin and other cryptocurrency sales from personal income tax, provided they are held for more than three years and reach certain income thresholds . This is not an isolated event. Countries such as Switzerland, Singapore, the United Arab Emirates, El Salvador, Hong Kong and parts of the Caribbean have long recognized that zero or minimal taxation on capital gains on Bitcoin can help spur adoption, financial innovation and consumer confidence. consumers.
As John F. Kennedy famously said: “A rising tide lifts all boats.“If we apply this logic to economic growth through Bitcoin, the tide is global and rising rapidly. In a sea awash with global liquidity and debt, the American economic ship must navigate these digital currents. The political choices of these nations – and the growing prosperity of their citizens – send a powerful signal: the United States can and should leverage Bitcoin as a tool for growth, not burden it with outdated tax models.
Trump’s words: a path to prosperity
President Trump himself has indicated his desire to rethink the taxation of Bitcoin. “They make them pay taxes on cryptocurrencies and I don’t think that’s fair,” he said in a recent interview, echoing the frustrations of millions of Americans who find it absurd to pay capital gains taxes after using Bitcoin to buy something as small as a cup of coffee. “Is Bitcoin money and do you have to pay capital gains tax if you use it to buy a coffee?” he asked rhetorically, highlighting how current laws discourage everyday transactions. He added: “Maybe we will eliminate taxes on cryptocurrencies and replace them with tariffs.“
This sentiment is not just a rhetorical flourish. Trump, speaking at the Bitcoin 2024 Conference in Nashville, proclaimed his vision for America to become the “capital of the world”The superpower of Bitcoin.“He also committed to”Create Bitcoin in America,“transforming the United States into a leading hub of Bitcoin innovation. Additionally, on December 5 he named former PayPal chief operating officer David Sacks as his White House “AI and Cryptocurrency Czar,” a move widely seen as a step towards implementing forward-thinking crypto policies.
The BITCOIN Act of 2024: A Strategic Reserve for the People
The United States has already taken enormous steps in this direction. The BITCOIN Act of 2024 requires that all Bitcoin held by any federal agency be transferred to the Treasury for holding in a strategic Bitcoin reserve. Over five years, the Treasury will have to purchase one million Bitcoins, holding them in trust for the United States. This government-level accumulation shows a long-term vision for incorporating Bitcoin into the national financial strategy. But why stop here? Eliminating capital gains tax on Bitcoin would create a vicious cycle between national politics and personal prosperity. While the federal government invests in and holds Bitcoin, private citizens could do the same without facing punitive tax obligations.
Serving the Everyday American
For everyday Americans, the cost of living and inflation have been focal points of President Trump’s reelection campaign. Traditional strategies – interest rate manipulation, quantitative easing – often amount to rearranging deck chairs on a sinking ship in the face of truly systemic economic challenges. Bitcoin offers a life raft – dare we say, a digital Noah’s ark – for Americans seeking to preserve and grow their wealth against the erosive forces of inflation. Eliminating capital gains taxes on Bitcoin would allow citizens to transact, invest, and save in a stable, limited asset without the drain of federal taxes on each incremental gain.
The ripple effect here is clear: More people adopting Bitcoin as a store of value and medium of exchange means stronger demand, which could further strengthen the U.S. Treasury’s strategic holdings. It’s a virtuous cycle, a positive feedback loop. As the value of Bitcoin grows, so does the nation’s wealth base, helping to pay off the national debt, strengthening the dollar’s hegemony in global trade, and truly making Americans richer and safer.
Why America needs Bitcoin
Bitcoin is no longer a niche experiment reserved for a small segment of enthusiasts. It has evolved into an urgent, mainstream priority for everyday Americans, especially the emerging generation that will shape our nation’s future economy. This is not an ideological plea; it’s a practical, data-backed reality. According to Stand With Crypto Alliance, a nonprofit organization committed to transparent blockchain policies, more than 52 million Americans now own some form of cryptocurrency. Nearly nine in ten Americans believe the financial system needs to be updated, and 45% say they would not support candidates who hinder cryptocurrency innovation. These numbers represent a broad, cross-sectional wave: Stand With Crypto research shows that 18% of Republicans, 22% of Democrats, and 22% of independents hold cryptocurrencies. This goes beyond the usual tribal politics and points to a fundamental truth: Bitcoin is now a national political talking point, not a side note on a fringe agenda.
The call for America to take the lead is clear. 53% of Americans want crypto companies to be based in the United States, ensuring that technological innovation and the wealth it generates stays at home. Among Fortune 500 executives, 73% prefer US-based partners for their crypto and Web3 ventures, signaling a corporate desire to keep America at the forefront of global financial progress.
Failure to act now risks repeating the mistakes of the past. America once led the world in advanced manufacturing, but today 92% of the most sophisticated semiconductor production is located in Taiwan and South Korea. We cannot afford to cede the future financial landscape to other regions. Bitcoin is not just another investment class; it is the digital backbone of a rapidly evolving monetary system. If the United States wants to preserve its economic hegemony, maintain leadership in innovation, and ensure everyday Americans have access to a stable, growth-oriented financial future, it must embrace Bitcoin wholeheartedly. By doing so, the nation can secure its place as a global Bitcoin superpower, uplifting our citizens, strengthening our economic base, and safeguarding our strategic interests in the 21st century digital economy.
America, chart the course
By aligning with global best practices and implementing forward-thinking policies, the United States can position itself as a beacon of financial freedom and technical innovation. Eliminating the capital gains tax on Bitcoin would signal to investors, entrepreneurs and everyday citizens that America is serious about leading the digital economy of the 21st century. It’s not just about being “Bitcoin-friendly”; it’s about ensuring that the average American has the tools they need to navigate turbulent economic waters.
The complexity and inefficiency of taxing each digital transaction represents an unnecessary burden on innovation and daily life. Americans deserve better: They deserve the freedom to transact in a digital world without punitive controls.
In essence, this is America’s chance to do what it has always done best: innovate, adapt and lead. Removing capital gains taxes on Bitcoin would not only fulfill a campaign promise; it would lay the foundation for long-term prosperity, enable citizens to secure their financial futures, and solidify the United States as the world’s leading Bitcoin champion. Indeed, a rising tide lifts all boats, and what better ship to board than a Bitcoin Ark, captained by a visionary administration determined to truly make America great again?
This article is a Take. The opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.